French shipping and logistics giant CMA CGM is reportedly close to finalising a US$1.4 billion all-cash acquisition of FedEx Supply Chain, the third-party logistics (3PL) business of FedEx, in a move that would significantly expand its footprint across the United States supply chain.
According to a report, citing people familiar with the negotiations, discussions are at an advanced stage and a deal could be announced as early as 1 July, although sources cautioned that the transaction has not yet been finalised and negotiations could still fall through.
If completed, the acquisition would represent another major milestone in CMA CGM Chairman and CEO Rodolphe Saadé’s strategy to transform the group into an integrated global logistics powerhouse, extending far beyond its traditional container shipping business into contract logistics, air freight, terminals and media.
The proposed acquisition also aligns with CMA CGM’s broader US expansion strategy. The company has committed US$20 billion in investments over four years in the United States, reinforcing its long-term commitment to the market.
Industry sources also indicated that the two companies are expected to unveil a broader strategic partnership focused on freight forwarding, combining FedEx’s extensive global air cargo network with CMA CGM’s maritime transportation capabilities. Details of the collaboration are still being finalised.
For FedEx, the sale would support its strategy of sharpening its focus on its core express and ground delivery operations. The move follows the company’s recent spin-off of FedEx Freight as an independent publicly traded business.
FedEx Supply Chain became part of the FedEx portfolio following the company’s US$1.4 billion acquisition of Genco Distribution System in 2015, creating one of North America’s largest third-party logistics providers.
Today, FedEx Supply Chain operates more than 130 distribution centres covering over 40 million square feet of warehouse space across North America. Its fulfilment network can reach approximately 96% of the US population within two days, supported by advanced cloud-based warehouse management systems and autonomous robotics.
Beyond warehousing and fulfilment, the business provides comprehensive transportation management services, including air, ocean and ground freight forwarding, customs brokerage, supply chain visibility solutions and reverse logistics. It also offers value-added services such as packaging, labelling, kitting, contract manufacturing, refurbishment and recycling.
The potential acquisition follows another major investment by CMA CGM earlier this year, when the company partnered with infrastructure investment firm Stonepeak to establish United Ports, a US-based port infrastructure platform valued at approximately US$10 billion.
Under the agreement, CMA CGM holds a 75% stake and retains full operational control, while Stonepeak owns the remaining 25% through a US$2.5 billion investment.
United Ports’ portfolio includes 10 container terminals worldwide, among them the Nhava Sheva Free Port Terminal (NSFT) at Jawaharlal Nehru Port (JNPA) near Mumbai. Operated jointly by J M Baxi Ports & Logistics and CMA Terminals Holding, the terminal has an annual handling capacity of 1.8 million TEUs and is the only container terminal at JNPA permitted to set market-driven tariffs. Acquired in 2022 under a 30-year concession, NSFT has become a strategically important asset within CMA CGM’s expanding global terminal network.
If the FedEx Supply Chain acquisition proceeds, it would further strengthen CMA CGM’s ambition of becoming a fully integrated end-to-end logistics provider, combining ocean shipping, ports, air cargo, warehousing and inland logistics under a single global platform.
